There are a quite a few benefits that come with being wealthy. One may enjoy exquisite vacations in exotic locations and have the pleasure of a concierge service to cater to your needs.
Millionaires are able to experience these pleasantries by setting up systems or finding ways to produce income and more importantly keep a majority of their income. In their pursuit to preserve and maintain their wealth, they may elect to hold a bank account or a financial presence in Switzerland.
From U.S. citizens to U.K. nationals, and from Arabian legacies to African financiers, millionaires all around the world flock to Switzerland when it comes to saving their wealth. This holds for conventional and crypto money-makers alike.
So what is it that makes Switzerland so lucrative to these millionaires?
To answer your question, let’s go through what Switzerland has to offer to those who store their wealth within its borders.
Swiss Tax Laws are the Most Major Force Behind It
Contrary to popular belief, Switzerland is not a tax free zone. Anyone who has their wealth managed in Switzerland has to pay taxes. But the fact that those taxes are minimal for a certain group is what makes Switzerland so lucrative for millionaires.
Cryptocurrency millionaires would benefit from several tax laws present within the Swiss region.
At the surface level, Swiss taxes can seem quite steep. But if you are a foreign national, then you may enjoy the benefit of only paying a lump-sum tax over your total income, property, and other assets.
Sounds too good to be true?
It isn’t.
But before we talk about the lump- sum tax, let’s dig a little deeper into capital gains and the VAT.
Capital Gains
Cryptocurrency assets are seen as transferable assets, as such, they are not subject to capital gains tax.
Cryptocurrency enthusiasts and traders would certainly be served well by these policies as it would allow them to preserve more of the appreciated wealth and minimize their tax ramifications.
Countries such as the US, UK, and others may have variable capital gains tax rates that may very likely eliminate more than 30% of crypto gains.
No Value-Added Tax
Crypto millionaires would benefit from the lack of VAT on their cryptocurrencies. As such, the movement of the digital assets from exchanges and the fees associated with those transactions are not subject to value-added taxes. One may utilize their crypto assets to purchase goods and services freely and without tax as well, making Switzerland one of the friendliest places in regard to crypto taxation.
What is the Lump Sum Tax Law in Switzerland
Foreign nationals who do not hold an income-generating job in Switzerland can opt to pay this lump-sum tax instead. This replaces the usual income tax paid by residents.
The percentage for the lump-sum tax is comparatively minimal when placed side by side with the normal income tax.
Instead of gauging income or property, the lump-sum tax is assessed by a foreign individual’s living expenditures in Switzerland. Factors such as rent or other necessary expenses are considered under this assessment.
The tax percentage that comes out of this is so low that it has been a subject of heated discussions among Swiss nationals who pay more than ten times that percentage under normal income tax (depending upon their own wealth).
But even then, lump-sum tax still continues to be a legal practice in several cantons (states) of Switzerland out of the need to make the country more lucrative to foreign nationals.
To apply for lump-sum tax, a person needs to be a foreign national with no active income being generated from Switzerland. If they meet these requirements, then they are eligible for this lucrative tax.
As such, millionaires who live or hold the citizenship of another country often save their wealth in Swiss bank accounts. As long as they don’t generate any income out of Switzerland, that wealth stays as good as not being taxed – even when it is.
– This article was originally posted at CryptoTraderNews
About CryptoCurrencyWire (“CCW”)
CryptoCurrencyWire (CCW) is a financial news and content distribution company that provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with CCW Prime. As a multifaceted organization with an extensive team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled visibility, recognition and brand awareness.
To receive instant SMS alerts, text CRYPTO to 888-902-4192 (U.S. Mobile Phones Only)
CryptoCurrencyNewsWire is where News, content and information converge via Crypto.
For more information, please visit https://www.cryptocurrencywire.com
Please see full terms of use and disclaimers on the CryptoCurrencyWire (CCW) website applicable to all content provided by CCW, wherever published or re-published: http://CCW.fm/Disclaimer
CryptoCurrencyWire (CCW)
New York, New York
www.cryptocurrencywire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com
This article contains Third-Party Content submitted by third parties, including articles submitted through the CCW Premium Partnership Program. All opinions, statements and representations expressed by such third parties are theirs alone and do not express or represent the views and opinions of CCW or its affiliates and owners. Content created by third parties is the sole responsibility of such third parties, and CCW does not endorse, guarantee or make representations concerning the accuracy and completeness of all third-party content. You acknowledge that by CCW providing you with this internet portal that makes accessible to you the ability to view third-party content through the CCW site, CCW does not undertake any obligation to you as a reader of such content or assume any liability relating to such third-party content. CCW expressly disclaims liability relating to such third-party content. CCW and its members, affiliates, successors, assigns, officers, directors, and partners assume no responsibility or liability that may arise from the third-party content, including, but not limited to, responsibility or liability for claims for defamation, libel, slander, infringement, invasion of privacy and publicity rights, fraud, or misrepresentation, or an private right of action under the federal securities laws of the United States or common law. Notwithstanding the foregoing, CCW reserves the right to remove third-party content at any time in its sole discretion.
